Product Life Cycle

Product Life Cycle is an important concept in marketing. It describes the stages

a product goes through from when it was first thought of until it finally is
removed from the market. Not all products reach this final stage. Some continue
to grow and others rise and fall.

Stages Of The Product Life Cycle

1. Introduction – researching, developing and then launching the product

2. Growth – when sales are increasing at their fastest rate

3. Maturity – sales are near their highest, but the rate of growth is slowing
down, e.g. new competitors in market or saturation

4. Decline – final stage of the cycle, when sales begin to fall

This can be illustrated by looking at the sales during the time period of the
product.

Extension strategies extend the life of the product before it goes into
decline. Again businesses use marketing techniques to improve sales.

Examples of the techniques are:

1.Advertising  try to gain a new audience or remind the current audience.

2.Price reduction  more attractive to customers

3.Adding value add new features to the current product, e.g. improving the
specifications on a smartphone

4.Explore new markets selling the product into new geographical areas or
creating a version targeted at different segments

5.New packaging  brightening up old packaging or subtle changes

Knowing your Products and Services

Product knowledge is an essential sales skill. Understanding your products'

features allows you to present their benefits accurately and persuasively.
Customers respond to enthusiastic sales staff who are passionate about their
products and eager to share the benefits with them

Characteristics of a Service

1. Lack of ownership. You cannot own and store a service like you can a
product. Services are used or hired for a period of time. For example when
buying a ticket to the USA the service lasts maybe 9 hours each way , but
consumers want and expect excellent service for that time. Because you can
measure the duration of the service consumers become more demanding of it.

2. Intangibility. You cannot hold or touch a service unlike a product. In saying

that although services are intangible the experience consumers obtain from the
service has an impact on how they will perceive it. What do consumers perceive
from customer service? the location, and the inner presentation of where they
are purchasing the service?.

3. Inseparability. Services cannot be separated from the service providers. A

product when produced can be taken away from the producer. However a
service is produced at or near the point of purchase.

4. Perishability. Services last a specific time and cannot be stored like a

product for later use. If travelling by train, coach or air the service will only last
the duration of the journey. The service is developed and used almost
simultaneously. Again because of this time constraint consumers demand more.

5. Heterogeneity. It is very difficult to make each service experience identical.

If travelling by plane the service quality may differ from the first time you
travelled by that airline to the second, because the airhostess is more or less
experienced.

The Classification of Products in Marketing

1.Shopping Goods Buying decisions are detailed considerations of price,

quality and value for products classified as shopping goods. Think about the
amount of time you put into picking out a clothing purchase, a car or appliances.
Successful marketing of your shopping goods can come from positioning as a
better buy than your competitors -- for example, presenting better value with
higher quality for the price or vice versa. Products in the shopping goods
classification tend to rely on heavy advertising and even trained salespeople to
influence consumer choices.

2. Specialty Products  tend to promote very strong brand identities, often

resulting in strong brand loyalty among consumers. Examples include stereos,
computers, cameras and the most high-end brands of cars and clothing. While
used cars are classified as shopping goods, a brand-new Mercedes is classified as
a specialty good. Buyers for your specialty goods generally spend more time
seeking the product they want than on comparing brands or products to make a
value decision. Your marketing of specialty goods can be successful by
promoting what you have on hand and where your costumers can find it.

3.Unsought Goods The products classified as unsought goods are those

that your consumers don’t put much thought into and generally don’t have
compelling impulse to buy. Examples include batteries or life insurance. Your
consumers essentially buy unsought goods when they have to, almost as an
inconvenience rather than the newest, latest, greatest product they can’t wait to
purchase. Marketing your unsought goods will likely be most effective with lots of
advertising and salespeople promoting the idea of unresolved need for your
unsought products.

Difference between Consumer Market and Industrial Market

Consumer marketing, or business-to-consumer (B2C) marketing, sales are made
to individuals who are the final decision makers, though they may be influenced
by family members or friends. A business marketing, or business-to-
business (B2B) marketing, sale is made to a business or firm.

Product Branding

Branding is the use of a name, term, symbol or design to give a product

a unique identity in the marketplace. Marketers have three major strategic
options: manufacturer branding vs. private labels; individual branding vs. family
brands; and co-branding. In addition, they must consider whether to seek
trademark protection for their brand.

1.Manufacturer vs. Private Brands

When a brand identity is clearly linked with the manufacturer of the

product, it is called a manufacturer brand. Also known as a national brand,
marketers usually choose this option when the firm has a strong, positive image.
But some products, especially if they are not well-differentiated in the
marketplace, benefit by being associated with the store where they are sold. For
example, major drugstore chains routinely offer their own private-label brands of
staple products like pain relievers and skin cream.

2.Individual vs. Family Brands

Individual branding is a strategic approach used by firms with sufficient

resources to create a separate identity for each product they offer. It makes the
most sense when a company sells items in very different categories, like candy
and detergent, or to highly distinct target audiences. Conversely, firms with
multiple offerings in the same category, like soup or cereal, often market a
variety of products under the same name. This use of a unified platform is called
family branding.

Co-branding is a strategy that links two existing brand names to create an

identity for a new product. There are three variations of this approach.
Ingredient branding is when one product is integral to the other, like an ice
cream brand blended with a well-known liquor. Cooperative branding involves
two or more brands sharing a promotion. For example, Hilton Hotels and Hertz
might advertise jointly for holiday vacationers. In complementary branding,
brands are marketed together to suggest the benefits of using both, like a
restaurant offering discounts at a local movie theater.

Trademarks

Regardless of which branding strategy they select, marketers often seek

trademark protection. This gives them exclusive rights to the brand name,
symbol and design, enforced by law and involving penalties for unauthorized use.
To obtain a trademark, the company must file an application with the U.S. Patent
and Trademark Office and follow specific guidelines. But the alternative is to risk
a competitor copying some aspect of the brand identity and benefiting unfairly
from the original firm's investment.

Product Packaging: Meaning, Levels, Functions and Importance

Packaging refers to the process of designing the package such as

containers, wrappers etc. It plays a very significant role in the marketing success
or failure of many products especially for non durable consumer products.

It not only provides protection to the product but also acts as a promotional tool.
Sometimes, customers assess the quality of the product from its packaging.
Packaging has played an important role in the success of many products like
Colgate Toothpaste, Lays Wafers etc. It has been described as silent salesman.

Levels of Packaging

1. Primary PackagePrimary package refers to the product’s immediate

package. In certain cases, such package is retained till the consumer is ready to
use the product. For example, plastic packet for socks while in some other cases
such package is used throughout the life of the product such as the bottle
carrying jam or tomato sauce etc.

2. Secondary Packaging is the additional packing given to a product to

protect it. Such packing is retained till the consumer wants to start using the
product. For example. Pears Soap usually comes in a card board box. Consumer
first throws the box when he desires to use it & than discards plastic wrapper too
to get hold of the soap.
3. Transportation Packaging It refers to packages essential for storing,
identifying or transporting. For example, use of corrugated boxes, wooden crates
etc.

Functions of Packaging

Following are the main functions performed by packaging:

1. Product Identification Packaging ensures easy identification of a product.

For example, Taj Mahal Tea can be easily identified from a distance due to its
blue color box.

2. Product Protection The most important function of packaging is to ensure

protection of a product from spoilage, leakage, breakage etc. It also ensures
effective protection during storage and transportation of a product.

3. Facilitating Use of the Product Packaging helps the customers to easily

handle and use the product. For example, tubes of tooth pastes, bottles of cold
drinks etc.

4. Product Promotion Packaging acts as an important promotional tool. The

attractive color scheme or photograph used in packing helps in attracting the
attention of the people and inducing them to purchase the product. Therefore, it
plays the role of silent salesman.

Importance of Packaging

1. Rising Standards of Health and Sanitation Rising standards of living in

the country have resulted in more use of packed goods and this also reduces the
chances of adulteration.

2. Self Service Outlets At present, packaging has occupied a place of silent
salesmanship especially at self service outlets.

3. Innovational Opportunity Various innovative packing ideas especially in

the field of medicines, soft drinks, milk etc. has increased the scope of marketing
of these products. Now, pasteurized milk come in packs which can be stored for
few days even.

4. Product Differentiation Packaging helps in product differentiation. The

color, size, material etc. of package help the customer to assess the quality of
the product. For example, potato wafers of local brand & branded companies
give different impact on the minds of the customers, all because of difference in
their packing.